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INTERIM STUDY REPORT
Government Modernization Committee
Rep. Jason Murphey, Chairman
Oklahoma House of Representatives
Interim Study 11-002, Reps. Jason Murphey and Lisa Billy
November 8, 2011
Analysis of central purchasing procedures.
Bill Fournet
The Persimmon Group
• There are four phases of purchasing: determining a contract need; solicitation and
acquisition of the need; management of the contract performance; and contract close-out
and lessons learned.
• Currently, purchasing at the state level is decentralized, inconsistent, ineffective
oversight, and vendors learn the “personality” of the bidding entity.
• Centralized purchasing with specific focus includes:
+consistent terms and conditions across agencies;
+consolidation and cooperative purchasing power;
+assigning bid type-specific experts (I.T., construction);
+standardizing sections—project management, performance, and status reporting; and
+capturing cost and schedule benchmarks.
• The state must establish and communicate a consistent purchasing methodology
David Yarkin
Government Sourcing Solutions
dyarkin@govsourcing.com
• Two divergent public sector procurement philosophies: share the wealth and strategic
sourcing.
• Described the seven step sourcing process used in Pennsylvania.
• For strategically-sourced contracts to have value, they need to be used.
• If the system for ordering is too difficult, end users will find other ways to obtain the
product, including paying retail.
• End users are accustomed to buying items online for personal use. Need to make the way
they buy at work just as easy.
• Another consideration is “cooperative purchasing” whereby governmental entities have
the ability to “piggyback” on contracts established by other jurisdictions.
• The piggybacking entity receives the same or better pricing as the original entity and can
insert its own terms and conditions that take precedence.
• Benefits of a shared services center includes reduction in cost of purchasing goods and
services, eliminate redundancy of multiple people in multiple agencies contracting for the
same goods and services, simplify procurement processes for certain suppliers, and free
up management time to focus on programmatic goals, not administrative functions.
Scott Schlotthauer
State Purchasing Director
• Described the role of state purchasing as being responsible for providing fair, efficient
and transparent processes in accordance with rules and laws for acquiring products and
services that meet the minimum requirements needed to accomplish an agency’s mission.

INTERIM STUDY REPORT
Government Modernization Committee
Rep. Jason Murphey, Chairman
Oklahoma House of Representatives
Interim Study 11-002, Reps. Jason Murphey and Lisa Billy
November 8, 2011
Analysis of central purchasing procedures.
Bill Fournet
The Persimmon Group
• There are four phases of purchasing: determining a contract need; solicitation and
acquisition of the need; management of the contract performance; and contract close-out
and lessons learned.
• Currently, purchasing at the state level is decentralized, inconsistent, ineffective
oversight, and vendors learn the “personality” of the bidding entity.
• Centralized purchasing with specific focus includes:
+consistent terms and conditions across agencies;
+consolidation and cooperative purchasing power;
+assigning bid type-specific experts (I.T., construction);
+standardizing sections—project management, performance, and status reporting; and
+capturing cost and schedule benchmarks.
• The state must establish and communicate a consistent purchasing methodology
David Yarkin
Government Sourcing Solutions
dyarkin@govsourcing.com
• Two divergent public sector procurement philosophies: share the wealth and strategic
sourcing.
• Described the seven step sourcing process used in Pennsylvania.
• For strategically-sourced contracts to have value, they need to be used.
• If the system for ordering is too difficult, end users will find other ways to obtain the
product, including paying retail.
• End users are accustomed to buying items online for personal use. Need to make the way
they buy at work just as easy.
• Another consideration is “cooperative purchasing” whereby governmental entities have
the ability to “piggyback” on contracts established by other jurisdictions.
• The piggybacking entity receives the same or better pricing as the original entity and can
insert its own terms and conditions that take precedence.
• Benefits of a shared services center includes reduction in cost of purchasing goods and
services, eliminate redundancy of multiple people in multiple agencies contracting for the
same goods and services, simplify procurement processes for certain suppliers, and free
up management time to focus on programmatic goals, not administrative functions.
Scott Schlotthauer
State Purchasing Director
• Described the role of state purchasing as being responsible for providing fair, efficient
and transparent processes in accordance with rules and laws for acquiring products and
services that meet the minimum requirements needed to accomplish an agency’s mission.